International students and citizens from Jeju-do hold a rally near Jeju City Hall on the afternoon of the 1st and cry against Russia’s invasion of Ukraine and against war. news
Hyundai Motor Company temporarily suspended operations at its Russian plant. Although the supply of semiconductors for vehicles is the cause, some point out that if the Russian economy shrinks due to sanctions from the United States and the European Union (EU), the shutdown of factories may be prolonged.
According to Russian media on the 1st, Hyundai Motor Russia’s St. Petersburg plant temporarily stopped production from the 1st to the 5th. This shutdown is due to the lack of supply of semiconductors for vehicles caused by global logistics difficulties. A Hyundai Motor company said, “It was difficult to find semiconductors for vehicles, so we tried to reduce the existing three-shift work to one, but even this was not easy, so we decided to temporarily suspend the operation of the factory.” Earlier, Hyundai Motor’s Alabama plant in the US also stopped operation for two days in January due to a shortage of vehicle semiconductors.
Although it was reported that the shutdown of the Russian plant has nothing to do with Western economic sanctions following Russia’s invasion of Ukraine, Hyundai Motor is said to be closely monitoring the future situation. Russia accounts for only 5.5% of Hyundai Motor and Kia’s annual global sales. However, Hyundai Motor Company and Kia Motors have established their position to the extent that they rank second and third in local sales after Russian car brand Lada. There are many concerns that local vehicle sales may become impossible for a considerable period of time as the value of the Russian ruble plummets due to economic sanctions from the US and EU.
An industry official said, “Russia has been withdrawn from the International Interbank Telecommunications Association (SWIFT), but Korean companies that have entered the local market do not do much business with Russian banks, so it is unlikely that this will have a major impact.” The problem is that the future of
Kim Hyun-woo reporter 777hyunwoo@hankookilbo.com